Local shares close flat amid lack of fresh leads

LOCAL SHARES closed flat on Tuesday as investors shied away from trading amid a lack of strong market catalysts.

The 30-member Philippine Stock Exchange index (PSEi) dipped 3.96 points or 0.05% to end at 7,322.89 yesterday, while the broader all shares index climbed 2.28 points or 0.05% to 4,340.98.

“The market continues to calm down as more and more investors wait on the sidelines for something to happen,” AAA Southeast Equities, Inc. Research Head Christopher John Mangun said in an e-mail. “The general sentiment remains cautious as more companies report 2019 earnings.”

The tame trading yesterday translated to a value turnover of P5.33 billion with 503.90 million issues changing hands. This is lower than Monday’s value turnover of P7.84 billion with 782.60 million issues.

Philstocks Financial, Inc. Research Associate Claire T. Alviar pointed to last-minute profit-taking to have dragged the main index yesterday, on top of most Asian markets closing in red territory.

Among the losing markets in Asia yesterday were Japan’s Nikkei 225 and Topix indices, which lost 1.40% and 1.31%, respectively. China’s CSI 300 index also fell 0.49% and South Korea’s Kospi index dropped 1.48% at the end of Tuesday’s trading

Meanwhile, most Southeast Asian stock markets also fell on Tuesday, as global sentiment soured after Apple became the latest company to flag lower revenue due to the coronavirus outbreak that has slowed economic activity in the region.

Thai shares and Singapore stocks fell 0.7% and 0.6%, respectively, making the them the top losers in the region.

Both Singapore and Thai economy have suffered following the outbreak, with Thailand expecting the number of foreign visitors to fall by 5 million this year, while Singapore lowered its 2020 growth target on Monday.

Ms. Alviar added that the report on all-time high remittances and tourism in the Philippines in 2019 helped lift the market intraday, but worries on the coronavirus outweighed it at trading’s close.

Sectoral indices at the PSE were mixed. Gainers were services, which went up 18.82 points or 1.31% to 1,454.76; mining and oil, up 47.30 points or 0.67% to 7,077.38; and property, up 1.09 points or 0.02% to 3,927.97.

Losers were led by financials, which shed 17.31 points or 0.99% to 1,727.30; industrials, which lost 32.82 points or 0.36% to 8,958.48; and holding firms, slipping 0.88 point or 0.01% to 7,146.35.

Declining names stood at 101 at the end of Tuesday’s trading, edging out advancers which clocked in at 86. Some 45 names ended unchanged.

Foreign investors turned bullish, tallying a net buying of P187.66 million to reverse Monday’s net foreign selling worth P336.82 million.

“The PSEi may end the week with minor gains as bargain seekers pick up cheap shares,” AAA Southeast Equities’ Mr. Mangun said. — Denise A. Valdez with Reuters